Single correct option
A dishonest dealer uses a weight of 900 g in place of 1 kg. He also sells his goods at 5% below the cost price. What is his overall profit or loss percentage?
- A. Profit of 5 5/9%
- B. Loss of 5%
- C. Profit of 4 1/2%
- D. Profit of 5%
Show answer and solution
Answer: (A) Profit of 5 5/9%
Let the cost price be ₹1 per gram.
For what he claims is 1 kg, the customer pays 95% of the cost price of 1000 g = ₹950.
He actually gives only 900 g, costing him ₹900.
Profit = 950 − 900 = 50 on a cost of 900 → 50/900 × 100 = 5 5/9 %.
Why not 5%: Gaining 10% by weight and losing 5% by price are not simply additive, and the gain must be computed on the actual cost (900), not on 1000.
For what he claims is 1 kg, the customer pays 95% of the cost price of 1000 g = ₹950.
He actually gives only 900 g, costing him ₹900.
Profit = 950 − 900 = 50 on a cost of 900 → 50/900 × 100 = 5 5/9 %.
Why not 5%: Gaining 10% by weight and losing 5% by price are not simply additive, and the gain must be computed on the actual cost (900), not on 1000.
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